China-based ride hailing company Shouqi Limousine and Chauffeur has secured RMB700m ($106m) in a series B+ round co-led by internet company Baidu and electric vehicle maker Nio, the South China Morning Post reported today.
Shouqi, which is now valued at more than $1bn, was co-founded in 2015 by taxi services Shouqi Group and Xianglong Taxi. It operates a chauffeured on-demand car-hailing businesses that relies on its own fleet of vehicles.
Baidu will provide Shouqi with access to its artificial intelligence and autonomous driving technologies as part of its strategic investment, while Nio is expected to provide its expertise in smart, electric vehicles.
The partnerships and funding will help Shouqi compete with local rival Didi Chuxing, which dominates an estimated 70% of the market.
The deal follows Shouqi’s $88m series B round in July 2017. The investors were undisclosed at the time, though the Post identified China Minsheng Trust as the lead investor, and China Money Network last month claimed conglomerate Oceanwide Holdings had led the transaction.
Shouqi had raised approximately $34m in December 2016 from an unnamed subsidiary of investment firm China Jianyin Investment, which took a 13.9% stake. Wealth manager Harvest Capital Management held an 8.5% share in the company as of July 2017.